The information revolution starts with your factory

Multi-tiered processes abound in manufacturing businesses, with companies thinking in terms of strategic and then detailed tactical and operational plans upon which to execute. But Adam Bartkowski, CEO of Apriso, believes there's a better way – and one that's essential for 2005. "Businesses have been implementing a top-down application of technology, and automating the whiter-collar infrastructure," he argues, "so the 'top floors' and 'shop floors' have not been connected. We have a long-standing cultural and process division here. I don't think manufacturers can continue in this way: I believe we will see companies flattening out the strategic planning processes, so they extend downwards into their organisations while, at the same time, some of the layers of planning are consolidated – and the execution process extends upwards." And there's a second dimension to this: operating KPIs – for example, OEE (overall equipment effectiveness) and takt time – need no longer remain at the factory level. They can now be part of the strategic plan. "Technology allows those KPIs to be delivered to every worker inside the business," he insists. We need connections Bartkowski points to what he sees as a lack of cohesive strategy and connectivity across plant operations and locations. Ironically, he reckons the danger is that this can only deepen as 'digital' connects with 'physical' at an accelerating pace. "Digital plant and factory systems are providing a huge number of events for companies to manage or not manage. They're allowing 24 x 7 connectivity between the production and distribution processes, for example, that just wasn't available before. And that's giving businesses huge assets or, potentially, huge liabilities. "In the past, there was categorisation of businesses by disciplines and approaches, such as assemble-to-order, make-to-order, or make-to-stock. I think the future is about how you can transform the business, as IBM puts it, 'to be as on-demand as possible'. It will be about how companies handle their demand and supply equation in such a way that there is the least commitment of supply, yet where they can still guarantee a cycle time, quality of product and lead time to market – in a better way than their competitors." To Bartkowski, the future is about being able to change the 'first I make, then I sell' model into a 'first I sell, then I make' one. "There is a changing perception in manufacturing, where people now look to leaders and see organisations such as Toyota and Dell, and the models they have implemented. They want to transform their operations in a similar way. They recognise this will give them much faster cycle times, efficiencies and connection to the events of supply – supporting a model that acts and works as a significant competitive asset." So, what are the technology enablers that are going to facilitate this transition? "If you look at the PLC structure for most of the equipment that's delivered in to factories now, it is becoming Intel-like, so production machines are not that much different from a PC framework – and communications and connectivity are becoming far easier," he says. "Also, RFID technology is enabling the entire input process of the conditions and positions of materials to be monitored without any human input. All of a sudden, you have potentially huge numbers of data points in production and distribution. Identifying what you have, and where it is, can increasingly be automated." These technologies can monitor events far more accurately and frequently than has ever been possible. "They are the enablers of real-time cycles that will facilitate the transition of business process models – that will transfer many more industrial companies into 'first I sell, then I make' organisations." Finally, Bartkowski singles out another magic ingredient for next year. "You also need application logic that can be positioned where it matters – at the point of contact, where decisions need to be made. In the future, cheap browser-enabled mobile devices that can process logic, all web services-based, will be used everywhere by everyone. With this technology, it will be possible to rapidly despatch and execute tasks, based on continually changing conditions within the factory or distribution location," he says. "Then key decisions will be made where it matters, in the supply network, as opposed to after-the-fact and in batch mode, when it's too late."